in Business & Finance

Boeing details funding boom for Middle East aircraft deliveries

Posted 20 October 2014 · Add Comment

Boeing has said that commercial financial institutions in the Middle East are increasingly funding the region's record number of airplane deliveries.

Boeing forecasts that airlines in the Middle East will require 2,610 new airplanes over the next 20 years, worth an estimated $550 billion.  

While one-third of that demand – 900 airplanes – will replace today's fleets, 66 percent of the demand is expected to be driven by the rapid fleet expansion in the region. 

Tim Myers, vice president and managing director of Aircraft Financial Services for Boeing Capital Corporation, said bank funding for airplane deliveries is becoming a global industry and the Middle East is playing an increasingly significant role. 

“Last year alone, more than 65 percent of all deliveries to airlines in the Middle East were funded from within the region,” Myers said. “Over the past few years we have seen great success by Middle Eastern banks and investors providing sources of financing for the Middle Eastern carriers, but they have been expanding outside the region by providing equity, debt, Islamic Financing options and more.” 

Myers and Jeff Johnson, president of Boeing Middle East, hosted more than 180 of the region’s leading aircraft financiers and investors at its annual conference in Dubai. 

“The health of the Middle East’s air travel industry and the sustained performance of commercial aircraft assets continue to create good investment opportunities, which was well reflected in the strong attendance at our financiers and investors conference,” Johnson said. 

 “This regional growth is not expected to slow down in the near future,” Johnson added. “Dubai air traffic has been consistently growing between 5 and 7 percent annually, higher than the global average of 3.5 percent. Abu Dhabi International Airport reported a 21.7 percent year-over-year traffic increase in July, and Hamad International Airport has handled more than 2 million passengers since its opening in April. With key regional players making significant leaps in aerospace infrastructures, I have no doubt that the Middle East will continue to outpace other markets in travel industry growth for some time.” 

This traffic growth is being matched by growth in local aircraft asset financing. 

“We are particularly pleased to see increasingly greater diversification in the source of funding as airlines seek to finance these new airplanes,” Myers said.

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Astral Aerial Solutions wins 2017 IATA Air Cargo Innovation award

The International Air Transport Association (IATA) has announced that Kenya based Astral Aerial Solutions is the recipient of the IATA Air Cargo Innovation Award for 2017, for the company's Unmanned Aircraft System (UAS) Traffic

Yahsat enters long-term partnership with X SAT FZE

Yahsat has started a long-term strategic partnership with UAE communications solutions company X SAT FZE. Under the agreement, X SAT is committed to capacity on Yahsat's upcoming Ka-band satellite, Al Yah 3, to be launched later this

FlightSafety starts only factory-authorised Gulfstream G650 training programme

FlightSafety International, that has training facilities in South Africa, has announced the start of the only factory-authorised Gulfstream G650 training programme located close to operators in Europe, the Middle East, and

Kenya Airways to launch direct flights to Victoria Falls

Kenya Airways will start a direct flight between Nairobi and Victoria Falls, Zimbabwe on May 1, 2017.

Nigeria certifies new commercial helicopter service operator

The Nigerian Civil Aviation Authority (NCAA) has licensed new entrant Genesis Global Aviation Limited (GGAL) to operate a commercial helicopter service across the country. Oscar Nkala reports.

Ethiopian to launch cargo services to Ahmedabad

Ethiopian Airlines has added Ahmedabad, a fifth cargo gateway to India, to its global cargo network as of March 28, 2017.

AfBAA SK1303240317
See us at
EBACE17 BT0103240517GroundHandling BT0303280917Aviation Festival BT25114617